14 journal entries

Accounting cycle using inventory transactions On January 1, 2018, Displays Incorporated has the following account balances: Accounts DebitCredit Cash Accounts Receivable Supplies Inventory Land Accounts Payable Notes Payable (6%, due next year) Common Stock Retained Earnings $ 25,0ee 22,800 28,000 60,800 230,000 24,e00 23,000 189,080 129,000 Totals $ 365,800 365,800 From January 1 to December 31, the following summary transactions occur a Purchased inventory on account for $333,000 b Sold inventory on account for $585,000. The cost of the inventory sold was $313,000 c Received $552,000 from customers on accounts receivable. d. Paid freight on inventory received, $27,000. e. Paid $323,000 to inventory suppliers on accounts payable of $331,000. The difference reflects purchase discounts of $8,000 f. Paid rent for the current year, $45,000 g Paid salaries for the current year, $153,000 Year-end adjusting entries: a. Supplies on hand at the end of the year are $8,000 b. Accrued interest expense on notes payable for the year c. Accrued income taxes at the end of January are $21,000 RequirementalGeneral General : Trial Balance Statement Ledger ournal Balance Sheet Analysis Record each of the transactions listed above in the 'General Journal' tab (these are shown as items 1-8) assuming a perpetual inventory system. Review the 'General Ledger and the 'Trial Balance' tabs to see the effect of the transactions on the account balances. Record adjusting entries on December 31. In the 'General Journal' tab (these are shown as items 10-12). Record